“If there’s a better way to worship a bank than borrowing $800K on a 30-year mortgage at 6.5% for a 900-square-foot home, I have yet to hear it . . .

Photo above – 1480 E 85th street, NYC. Currently off market. This is apparently an example of the 900 square foot, $1 million dollar home which The Washington Examiner says is absurd . . .

The post title is a direct quote from The Washington Examiner (link at bottom). The reporter is trying to reconcile Americans’ opposing urges: living the dream as singles in an ultra-expensive coastal city, or to indebt themselves for their entire lives for a decrepit pile of bricks.

I suspect the article was penned before Trump started to thump his chest about 50-year mortgages. Sorry, Mr. "Tariffs will fix everything" - I’m not buying THAT one either. Nobody should have to sign up for a loan that only their kids can pay off. Wait . . . my bad . . . that’s what congress is already doing to us with the $38 trillion national debt.

Economists who make WAAAAY more than you and I do tell us: don't worry, be happy. That we can NEVER pay off the national debt ($140,000 per man woman child in America). We will just keep refinancing it. Or do something to make the dollar crash and hope nobody notices.

Back to the “worship your bank” thing. The article suggests that people should just move to where real estate is reasonably priced. And rents aren’t $5,000 a month for a cubby sized walkup. But that would require all the SINKs (single income, no kids) to wave goodbye to friends, relatives, and subsidized government amenities in those insanely expensive cities.

Those amenities are, in course, a large part of the reason our national debt is $38 trillion . . .

This is the point where some urban-dwelling “progressive” begins foaming at the mouth: “red states get more federal aid than blue states!! Grrr !!!”

Um yes, and people in red states earn less taxable income, have smaller mortgages, and don’t require free bus rides, free daycare, rent stabilized apartments, $100 million per mile subway systems to shorten their commutes, or a police force the size of Haiti’s army to prevent mayhem on their rural red state streets.

What’s my point? 50-year mortgages are a terrible idea. Borrowing $800,000 at 6.5% for 30 years is also a terrible idea. Signing up at age 18 for $100,000 in student loans - before you can even legally drink - is a terrible idea. A national debt the size of Mount Everest is a terrible idea.

Trying to solve all our problems by borrowing money is a terrible idea. Just ask any corporation – or citizen – who has filed for bankruptcy.

I’m just sayin’ . . .

If your city is too expensive, move. It’s the American way

This page is a permanent link to the reply below and its nested replies. See all post replies »

jackjjackson · M

Everything you write is correct except moving and being smart NOW won’t fix the national debt. What will fix it is a higher taxable GNP and elimination of the trade inbalnce that began after WW2. What will fix that is tariffs and its good results have already started. Tariffs have been collected and the US is operating at less of a trade deficit with more improvement to come. Tariffs aren’t designed to collect money. They are a tool to be used temporarily to correct trade imbalance. Previous administrations haven’t used this too as the debt grew. Mandami says the police will be replaced by social workers. Social workers have traditionally been paid peanuts so is Mandami a genius using this tool to reduce NYC’s expenses?

SusanInFlorida · 31-35, F

@jackjjackson your theory that trade imbalance is part of the problem is correct, of course.

after world war 2 america (as the victor with unbombed factories) became the worlds supplier of automobiles, televisions, kitchen appliances, and later on computers etc.

that created a huge demand for workers, to "supply" consumer goods to the rest of the world.

then those bombed factories in Japan, Germany, France, etc were rebuilt. the workers were willing to accept lower wages than their US counterparts. and because the factories were brand new, they had advantages in automation and ergonomics, allowing cost advantages.

America has survived since on being the worlds supplier of software, music, hollywood films, and treasury bills as a hedge against inflation. we have not been a manufacturing or export leader in decades.

and I see no opportunity to return to this position. absent another world war, the rest of the planet will continue to build factories, hire desperate workers, and install robots too.

that's probably preferable to having half the 3rd world's workforce show up on our doorstep seeking an enviable living standard as represented in films like

- Jaws
- the exorcist
- Moonstruck
- The accidental tourist
- La La land

much of contemporary America more closely resembles: Winter's Bone; No Country for Old Men; or Beasts of the Southern Wild.

jackjjackson · M

Don’t forget that we paid to help those overseas criminals after WW2. Other countries are building factories HERE. @SusanInFlorida

swirlie · 31-35

@jackjjackson

What will fix that is tariffs and its good results have already started.

Well, that's good jack! I'm really happy to hear that American citizens are paying for their own National Debt and are not relying on other countries to foot the bill for America's lavish excesses since WWII which caused the National Debt!

Please tell all your fellow Americans to keep up the good work!

jackjjackson · M

Wrong again. Statistics show that producers and middlemen pay more than 2/3 of the tariffs and as other counties are fixing US trade deficits they created tariffs are being reduced AS INTENDED. Tariffs are one of the economic tools available to fix maliciously created trade imbalances. @swirlie

swirlie · 31-35

@jackjjackson
Tariffs are always paid by the American consumer jack, they are not absorbed by the exporting country who manufactured the goods in question.

jackjjackson · M

Before you make that errant claim again I suggest you study the issue. @swirlie

swirlie · 31-35

@jackjjackson
No, I'm serious jack, I've always thought I looked pretty plain to be honest!

jackjjackson · M

If that’s you in the pic then no. @swirlie

swirlie · 31-35

@jackjjackson
...yes it's me and no you don't think I look plain?

jackjjackson · M

Indeed not quite the opposite the portion of the bod in that pic is a 10 @swirlie

swirlie · 31-35

@jackjjackson
OH! Now I'm blushing jack and that is very unusual for me!

jackjjackson · M

Awwww @swirlie

swirlie · 31-35

@jackjjackson
🥵

Khenpal1 · M

@SusanInFlorida USA has no longer monopoly on anything , so its more like pipedream.

SusanInFlorida · 31-35, F

@Khenpal1 top 10 things the USA might still have a monopoly on

1 - treasury bill issuance
2 - star trek TV series spin offs on Paramount+
3 - the Superbowl
4 - using the "english" system of weights and measures, instead of metric
5 - filibusters and government shutdowns
6 - red light cameras
7 - porch pirates
8 - lawn jockey statue lanterns
9 - deep fried dill pickles
10 - now the worlds leader in Burmese pythons in the wild!